China Evergrande considers repaying offshore investors of $19 billion bonds with cash instalments, debt-to-equity swap – report
STOCKS
China Evergrande considers repaying offshore investors of $19 billion bonds with cash instalments, debt-to-equity swap – report
STOCKS

China Evergrande considers repaying offshore investors of $19 billion bonds with cash instalments, debt-to-equity swap – report

 

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Embattled property developer China Evergrande Group is considering repaying offshore bondholders owed around $19 billion with cash instalments and equity in two of its Hong Kong-listed units, according to Reuters citing sources.

As part of the proposal, Evergrande is looking to repay offshore creditors the principal and interest by turning them into new bonds, which will then be repaid in instalments over a period of seven to 10 years, according to the report.

Offshore creditors also will be allowed to swap a portion of their debt into stakes in the developer’s Hong Kong-listed property services unit, Evergrande Property Services Group Ltd , and electric vehicle maker China Evergrande New Energy Vehicle Group Ltd, said the report.

Up to 20% of the offshore debt can be swapped into equities of those two units, it said, adding that the restructuring proposals are, however, at an early stage and are subject to change.